PART A:

What is the NPV of the following cash flows if the required rate of return is 0.07?

Year 0 1 2 3 4

CF -11600 4700 4400 1100 3400

Enter the answer with 2 decimals (e.g. 1000.23).

Your Answer:

PART B:

Northern Railway is considering a project which will produce annual sales of $1,275,000 and increase cash expenses by $918,000. If the project is implemented, taxes will increase from $141,000 to $216,000 and depreciation will increase from $183,000 to $272,000. The company is debt-free. What is the amount of the operating cash flow using the top-down approach?

Part B options:

	$268,000
	$250,000
	$215,000
	$290,000